HIMS Stock Falls -42% On FDA Crackdown & Novo Nordisk Lawsuit
Hims & Hers Health (HIMS) – a telehealth platform offering consultations and wellness supplements – hit a 8-day losing streak, with cumulative losses over this period amounting to -42%. The company’s market cap has crashed by about $2.9 Bil over the last 8 days and currently stands at $3.9 Bil.
The stock has YTD (year-to-date) return of 46.9% compared to 1.4% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity or a trap.
What Triggered The Slide?
[1] FDA Crackdown and Novo Nordisk Patent Lawsuit
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- Halted sales of compounded semaglutide weight-loss drug
- Multiple analyst price target downgrades
- Impact: Sharp price decline amid institutional selling, Trading volume surged 688% above average
Opportunity or Trap?
Below is our take on valuation.
There is not much to fear in HIMS stock given its overall Strong operating performance and financial condition. This is aligned with the stock’s High valuation because of which we think it is Fairly Priced (For details, see Buy or Sell HIMS).
But here is the real interesting point.
You are reading about this -42% move after it happened. The market has already priced in the news. To avoid the next loser before the headlines, you need predictive signals, not notifications. Our High Quality Portfolio has a risk model designed to reduce exposure to losers.
Returns vs S&P 500
The following table summarizes the return for HIMS stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | HIMS | S&P 500 |
|---|---|---|
| 1D | -10.8% | -0.3% |
| 8D (Current Streak) | -42.3% | -0.4% |
| 1M (21D) | -45.6% | -0.4% |
| 3M (63D) | -58.0% | 3.2% |
| YTD 2026 | -46.9% | 1.4% |
| 2025 | 34.3% | 16.4% |
| 2024 | 171.7% | 23.3% |
| 2023 | 38.8% | 24.2% |
Take a look at what history tells you about whether past dips like this have been buying opportunities or traps: HIMS Dip Buyer Analysis.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 132 S&P constituents with 3 days or more of consecutive gains and 16 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 99 | 7 |
| 4D | 12 | 4 |
| 5D | 8 | 1 |
| 6D | 9 | 3 |
| 7D or more | 4 | 1 |
| Total >=3 D | 132 | 16 |
Key Financials for Hims & Hers Health (HIMS)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $872.0 Mil | $1.5 Bil |
| Operating Income | $-29.5 Mil | $61.9 Mil |
| Net Income | $-23.5 Mil | $126.0 Mil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ2 | 2025 FQ3 |
|---|---|---|
| Revenues | $544.8 Mil | $599.0 Mil |
| Operating Income | $26.7 Mil | $11.8 Mil |
| Net Income | $42.5 Mil | $15.8 Mil |
The losing streak HIMS stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.